Effective 10/1/13 HUD has announced the following changes to the FHA Short Sale Requirements:

There is a new dual agency/brokerage requirement: to meet the new short sale purchase contract addendum requirements, brokers and their agents may represent either the buyer or the seller, but not both parties

There are new or different documentation requirements now for verifying assets, income, and expenses

There is a Deficit Income Test (DIT) that will be used to determine a homeowner’s financial hardship

There is the possible elimination of the financial hardship/deficit income preforeclosure sale requirement for:

service members who have received Permanent Change of Station (PCS) Orders, or

homeowners who are deemed eligible for a streamlined preforeclosure sale option

There are new validation requirements for appraisals

*This information is not intended to be legal advice. This information is subject to change, please contact us for more information.